Witnessing recovery in developing hospitals

Company

09 Sep 2024 | 5 Min Read

Stock information: MEDANTA has a market cap of INR 298.3b and 52-week range of INR 1514 / 675.

Financial snapshot: Sales expected to grow at 11% CAGR over FY24-FY26.

Stock performance: Witnessing recovery in developing hospitals, capex progressing well.

Building capacity: MEDANTA aims to grow its capacity to ~3,373 beds by FY25 and 5,173 beds over the longer term.

Matured hospitals: Witnessed a 15% sales growth YoY in FY24 with a margin expansion of ~300bp.

Valuation and view: MEDANTA is valued at 33x 12M forward EV/EBITDA to arrive at a TP of INR1,380, maintaining BUY.